Basic duties
Upon the death of an employee, his/her employment relationship shall terminate, based on the provisions of Section 48(4) of the Labour Code. Other basic employment relationships are also terminated, most often in the form of a work activity agreement or a work performance agreement.
The Labour Code provides, who is entitled to exercise the rights of the deceasede.g. unpaid wages or compensation for untaken holiday. The employer's monetary rights, on the other hand, cannot be exercised after the employee's death.
In the event of the death of an employee during the course of employment, the employer must distinguish in relation to the survivors whether the death was the result of an accident at work or occupational disease or whether it was any other death.
V the provisions of Section 328(1) of the Labour Code it is stated that the employee's financial rights are not extinguished by his death. Up to an amount equivalent to three times his average monthly earnings, the wage and salary rights arising from the basic employment relationship pass successively to his spouse, children and parents if they were living in the same household at the time of his death. They become the subject of inheritance only if they are not or if their amount exceeds three times the average monthly earnings.
According to the provisions of Section 328(2) of the Labour Code the employer's pecuniary rights are extinguished by the death of the employee, except for rights which have been finally adjudicated or acknowledged in writing by the employee before his death as to cause and amount, and rights to compensation for damages caused intentionally.
The employer's financial rights that have not been extinguished by the death of the employee are to be satisfied by the employee's heirs.
The Labour Code in its provisions of § 375 lists types of compensation for the survivors of employees who die as a result of an occupational accident or disease. The employer is obliged to provide:
- reimbursement of expenses reasonably incurred in connection with his treatment,
- reimbursement of reasonable funeral expenses,
- reimbursement of survivor's maintenance costs,
- one-time compensation for survivors,
- compensation for material damage.
Obligations to the Czech Social Security Administration
On the death of the insured, the following shall be submitted Pension insurance record sheet at the request of the social security authority within the time limit set by the authority, or within three months of death if it has not been requested earlier (see the provisions of Section 39 of Act No. 582/1991 Coll., on the organisation and implementation of social security).
It must also be filed with the relevant district social security administration within 8 calendar days of the date of termination of employment, i.e. the date of the employee's death, Notice of termination of employment (see the provisions of Section 94 of Act No. 187/2006 Coll., on Sickness Insurance).
Obligations to the health insurance company
Termination of employment shall be notified within 8 days on a form Employer's mass notification (see Section 10 of Act No. 48/1997 Coll., on public health insurance).
Procedure in AVENSIO Software
Setting the termination of the employment relationship (FTE, FTE) due to the death of the employee on the employment record (FTE, FTE) Code 90 in the field Exit, be sure to enter the date of death in the field To.
Application form to the relevant ZP generate and process in the program menu Main menu - Print reports - Health insurance companies - Printing and editing of health insurance reports.
Application form to the relevant Social Security Office generate and process in the program menu Main menu - Print reports - Sickness and Social Insurance - Printing and editing of Social Security reports.
ELDP generate and process in the program menu Main menu - Print reports - Payroll - Record sheet - Printing and editing ELDP.
Automatic reimbursement of untaken leave set in the window Holiday balances and entitlements by checking the condition Refund on termination. You can open this window on the employee tab, tab Replacements with the three dots button.
Average monthly earnings employees can be found either by using the report 981110_Average monthly gross and net earnings (see program menu Main menu - Processing - Average earnings) or on the employee's card - tab Replacements.
